Mr. David Carden, President of the American Chamber of Commerce in Thailand, and Members of AMCHAM Thailand,
Lt. Gen. Daniel W. Christman, Senior Vice President for International Affairs of the US Chamber of Commerce, and Members of USCC,
The Honourable Ambassador Eric John,
Ladies and Gentlemen,
Good evening, and Good morning to those of you in Washington, DC
1. It is my pleasure to have this opportunity to speak to representatives of leading U.S. businesses here in Thailand and to those of you, who are also joining us from Washington via the video conferencing system.
2. I just got back from attending the World Economic Forum in Davos two days ago. I can say that the trip in itself was rewarding. World leaders and CEOs assembled to collectively address the global economic crisis which is felt throughout every corner of the world. We talked about many global challenges and the tasks ahead, such as food security. Therefore, we have a daunting task ahead of us and nobody can afford to be complacent, given the circumstances we now face.
3. Since assuming office, I have on various occasions met with Thai and foreign investors to exchange views with them on how best to tackle this economic crisis and how to restore confidence in Thailand once again. I have also met with farmers, workers, NGOs and peoples from all walks of life to learn and hear from them. We are indeed the people’s government.
4. I therefore thank the American Chamber of Commerce and the US Chamber of Commerce for organising this timely event and I welcome this opportunity to share with you my Government’s policies to move Thailand forward. At the same time, I stand ready to listen to your thoughts and concerns that you may have.
5. Here with me tonight, are my distinguished colleagues; Deputy Prime Minister Korbsak, as well as the Minister of Foreign Affairs, Minister of Finance and Deputy Minister of Commerce, who are prepared to answer your tough questions at the end.
6. AMCHAM and the USCC have always been good friends of Thailand. Looking back, AMCHAM has done much since its establishment in Thailand to promote goodwill and friendship between our two countries and peoples. Most importantly, you stood by us throughout our political turmoil, never doubting Thailand’s commitment to democracy and a free market economy. Let me assure you that you were right in retaining such confidence in Thailand all along. This government attaches great importance to promoting foreign investment and is firmly committed to opening its arms to investors and to facilitating investments as far as the law permits.
7. For almost two centuries, Thailand and the U.S. have enjoyed close ties of friendship. We both cherish the notion of freedom and democracy and have together fought hard for these shared values on many occasions. Our peoples are also closely bonded through tourism, education, and business links. Our relationship has withstood the tests of time and change. As it stands, the U.S. continues to be our great ally and our largest export market. Without a doubt, the U.S. investments in Thailand have been deeply rooted and diversified. At the same time, Thai students continue to flow into the United States for higher education and, as graduates, many take on governmental roles and my Cabinet is no exception.
8. Today our two countries stand at the crossroads of new challenges, both external and internal. But we both are also geared up and ready for a fresh start to meet these challenges together. On this note, let me take this opportunity to congratulate you on your new Administration under President Barack Obama. As always, we stand ready to work with the U.S. Administration to reinforce our common objectives towards addressing regional and global challenges, be it transnational crime, maritime security, HIV/AIDs, counterterrorism, climate change, food and energy security.
9. I know that many of you here may have been concerned about Thailand’s political situation over these past few months. I understand that, as businessmen, you may be worried about how our political troubles have affected Thailand’s investment and business climate.
10. It is a priority of my Government to restore social harmony to Thailand. Please rest assured that past incidents like the airport closure will never recur. I have instructed the Ministry of Transport to look into measures, which they have already begun to implement, to promote and enhance airport security.
11. More important than that, my Government’s first priority is to bring back normalcy to the political situation. We will listen to opinions from all sides and avoid the use of violence in resolving our national problems in all circumstances. To achieve this goal, we will resort to peaceful means, while fully abiding by principles such as the rule of law, transparency, accountability, civil liberty, and good governance---not only in theory but in practice. We will work to ensure that Thailand is back on track to become the investors’ haven of Asia. You can rest assured on that. If you have been here since last month, you would have noticed a change. Last week, demonstrations were in full force. But we have a majority in Parliament, and the government and Parliament were able to get through all ASEAN documents in preparation for the Summit, scheduled for the end of this month. We will get the mid-year budget through this month. We were also strengthened by the success in the by-elections last month, which consolidated our position.
12. Our political problems cannot be resolved alone without addressing our economic challenges, which are made the more complex by the global financial crisis. So far, our financial institutions have withstood the global financial crunch owing to the stringent financial measures we have in place since the Tom-Yum-Goong crisis in 1997. But our exports, foreign investments, and manufacturing have all been increasingly affected. Report of increasing lay-offs is also a matter of grave concern for my Government. What actions will we take to address this problem?
12.1 Recently, the Government has approved a 116 billion baht economic stimulus package--this budget passed through Parliament--, which will be used to increase agricultural prices; support free education programmes; spending outside budget will be used to set-up special funds for senior citizens; create jobs and conduct training programs; improve remuneration for public health staffs; and provide support to all groups. We will also consider the continuation of infrastructure projects such as the dual track train system.
12.2 We will lessen our external energy dependence by developing domestic alternative energy resources such as bio-diesel and ethanol, thereby ensuring our energy security.
12.3 We will promote a favourable investment climate, high quality of life, and Thailand’s enhanced competitiveness in the world economy. We will ensure the development of our human resources by granting access to 15 years’ education free of cost for all and carrying out a second wave of education reform and upgrade skills.
12.4 We will also make sure to coordinate fiscal and monetary policies — to create a balance between the rates of economic growth, price stability and employment. We will strengthen the capital markets and system of financial institutions to enable them to provide necessary support for investment and business.
12.5 We, of course, are mindful of the concerns of foreign investors regarding the Foreign Business Act. I wish to repeat what I have told foreign investors in Thailand last month that my Government believes in free and fair competition. We are striving to ensure that Thailand remains investor-friendly. My Government will not amend or modify the Act. At the same time, we will also look at outdated laws that serve as obstacles or impediments to business operations.
12.6 The Board of Investment’s role as an effective one-stop service center for foreign investors will also be enhanced. Currently, the BOI is preparing to launch road-shows to key markets, for instance Japan, China, EU and, of course, the U.S. You will have the opportunity to directly ask the BOI questions in-depth.
13. Thailand does not face today’s economic challenges alone. Our neighbours are also facing the same challenges. It is my Government’s priority, therefore, to cooperate closely with our ASEAN friends to expand regional financial cooperation so that mutual assistance is provided in the event of exacerbated regional economic problems.
14. We will also develop Thailand as the transportation and logistics hub for Southeast Asia, so that transportation networks linking us with our neighbours are established along the North-South and East-West economic corridors to include, for instance, the economic bridge project linking the Gulf of Thailand with the Andaman Sea, and the transportation network linking Indonesia, Malaysia, and Thailand. Such regional transport routes would also help develop our neighbouring countries, thereby maintaining regional security and stability.
15. Since Thailand is the current Chair of ASEAN, my Government will make ASEAN a cornerstone of our foreign policy. We will convene the ASEAN Summit by the end of this month. We will work to realise the goal of creating an ASEAN Community by the year 2015. We will work to realise the ASEAN Charter’s goal of making ASEAN a people-centred organisation. Indeed, we seek to interact with the international community in setting international standards, in such fields as agricultural trade, intellectual property rights, peace and security, environment and energy security, as well as the protection of democratic values, human rights, and humanitarianism. We will ensure that Thailand remains a responsible stakeholder in the world.
16. Our American friends can also rest assured that Thailand, as Chair of ASEAN, would work at her full potentials to reinvigorate ASEAN as a relevant organisation, well-prepared, and ready to respond to various needs in time of crisis. Thailand would welcome deeper U.S. engagement, as a Dialogue Partner of ASEAN, for a more prosperous Southeast Asian region. Deeper U.S. engagement with individual countries in areas of trade, investment, security and counter-terrorism will ultimately benefit both the peoples of the U.S. and ASEAN.
17. I have spoken far too long. Of course, all the measures I have laid out are not going to be easy. But with your support, we hope that we will be able to lay down a solid foundation for further work along the way.
18. Thank you for your attention. I am now ready to further clarify any issue of concern you may want to raise. I will also ask my colleagues, Deputy Prime Minister Korbsak, the Ministers of Foreign Affairs, Finance and Deputy Commerce Minister to join in.
Prime Minister at the Ministry of Foreign Affairs
Press Division, Department of Information Tel.(02) 643-5170
Fax. (02) 643-5169 E-mail : div0704@mfa.go.th End.